The Hilton Head Island Town Council voted Dec. 9 to authorize general obligation borrowing of up to $35 million to fund capital projects, specifying acquisition and renovation of property for the town’s fire‑rescue headquarters and emergency operations center and to purchase land for conservation purposes.

Finance Director Dave Byrd presented two scenarios — borrowing $25 million or $35 million over a 15‑year repayment schedule — and said the town had capacity to borrow within its existing debt framework and benefit from favorable interest‑rate conditions tied to its recent bond rating. Town bond counsel explained spending thresholds and rebate calculations tied to tax‑exempt bond rules and noted milestones intended to reduce rebate risk.

Council debated both scope and amount. Some members said a narrower, smaller borrowing amount better matched a conservative fiscal stance and left more cash available for future priorities. Others said borrowing the larger authorized amount preserved flexibility to fund shovel‑ready projects, land conservation and potential overruns, and argued the town has strong fund balances and no immediate need to raise millage. A motion to amend the ordinance broadened the project language to 'fund capital projects, including but not limited to the acquisition/renovation of certain land and existing improvements...' so council could consider other eligible capital projects in line with spending thresholds.

The amended main motion (not to exceed $35 million, 15‑year term, broadened project language) passed by a 5‑2 vote. Councilmembers who opposed the higher cap cited a preference to borrow less now and preserve options for future budget cycles.